Can A Loan Modification Stop Your Foreclosure Process

The current administration has produced an assistance plan to help troubled homeowners. The plan, called the Home Affordability and Stability Plan (HASP) has allocated $75 billion for lending institutions to help troubled homeowners avoid foreclosure. If you are one of those troubled homeowners, but you find yourself already in the middle of a foreclosure situation, you may be wondering whether or not you can halt your foreclosure process by obtaining a loan modification.

It is possible to get a mortgage modification before the foreclosure on your home becomes final. However, you need to qualify for a mortgage modification while in the middle of foreclosure proceedings and the potential new terms of the modified loan need to be affordable to your financial situation. Every homeowner's case is unique, as lenders evaluate the homeowner income and expenses when determining whether or not the homeowner qualifies for a loan modification. Contact your lender to find out if a loan modification while in the middle of foreclosure is an option for you.

If you are in the middle of a foreclosure, there are many organizations offering to help negotiate a loan modification for a fee. You should be extremely cautious before hiring such an organization, as often, they are simply trying to profit from your distress. The HASP has funds allocated to provide incentives to lenders so that they help their mortgage holders avoid foreclosure. It is to your mortgage lender's advantage to help you with a loan modification. Therefore, it is fairly unlikely that you need to pay a third party to work out a mortgage modification for you. Extreme caution with these mortgage lender negotiators is essential.

That said, it is important to ensure that a foreclosure sale does not occur after you've obtained a mortgage modification. Do not automatically assume that because your loan was modified, the foreclosure process will simply stop. You must contact with your lending institution to ensure that steps were taken to halt the foreclosure on your home.

Loan modification is a viable option for many homeowners, but there are pitfalls that homeowners fall into when applying. Small mistakes in your application might be the reason your lender will reject you. The best way to combat this is by getting a do it yourself loan modification kit.

One popular kit that gets results is 60 Minute Loan Modification The kit includes everything that you will need in order to modify your home loan, such as a professional hardship outline, contact information of all the major lenders, and many more tips and tricks. The Kit is a must have for struggling homeowners.